Yet the most outrageous–if not the largest–Ponzi scheme is now emerging from the waters off southern California. Call it the Yachtzi Scheme.

According to local news reports, an Orange County yacht broker has gone missing after several investors complained they had lost their money. Police are investigating and haven’t filed any charges. The yacht broker, Edward Sellers Fitzgerald of Dana Island Yachts, couldn’t be reached and is being sought by the local sheriff’s office.

“There are several aspects to it,” the sheriff’s spokesman said. “Some things have the making of a ponzi scheme, others don’t.”

Investors say they were lured by “boat deals.” The plan was for Mr. Fitzgerald to buy boats on the cheap, sell them to a buyer he had prearranged and record a hefty profit.

One investor said he earned $4,000 on a $20,000 investment in four weeks. Profits would be rolled into the next deal. The investor says he is now out $120,000–$100,000 of which was financed with a home-equity loan.

Client money held in escrow accounts by Mr. Fitzgerald for the purchase of high-end yachts has been cleaned out. Authorities say total losses could be in the millions of dollars.

The case goes to show that even during a global financial crisis, investors are again so hungry for returns they were blind to clear risks. Some investors put money with the broker just two months ago.

Buying boats and re-selling them for quick profit at a time when boat-sales have crashed? It almost make postage stamps sound sophisticated.